US benchmark equities experienced a downturn on Monday, marking the penultimate trading session of 2024. The Nasdaq Composite Index saw a decline of 1.2%, finishing at 19,486.8. The S&P 500 followed closely, dropping 1.1% to land at 5,906.9, while the Dow Jones Industrial Average decreased nearly 1%, settling at 42,573.7.
This broad decline affected all sectors of the market, with consumer discretionary and materials leading the way down. It is important to note that the stock market is set to close on January 1, coinciding with New Year celebrations. In a separate announcement, both the New York Stock Exchange and the Nasdaq plan to suspend trading on January 9.
This closure honors the passing of former President Jimmy Carter. Additionally, the Securities Industry and Financial Markets Association has advised an early market close for bond trading on that particular day. In economic news, pending home sales within the United States unexpectedly rose last month, surpassing analysts' expectations and reaching their highest level since February 2023, according to the National Association of Realtors. Furthermore, Texas manufacturing activity displayed an unexpected return to growth territory.
This rebound in production comes despite a decline in expectations over the next six months, as reported by the Federal Reserve Bank of Dallas. Shifting focus to corporate activities, ByteDance, the company behind TikTok, has unveiled plans to invest up to $7 billion in Nvidia’s advanced AI chips outside of China in the year 2025, as reported by The Information.
In another development, Nvidia has officially completed its acquisition of AI software developer Run:ai, confirmed through a blog post from the company itself. Following these announcements, Nvidia's shares rose 0.4% by the market close. In contrast, Boeing saw its shares decline by 2.3% amid reports from various media outlets.
The South Korean transport ministry has announced plans to inspect Boeing aircraft operated by local airlines after a tragic incident involving one of the manufacturer’s 737-800 planes. In the bond market, the yield on the US 10-year Treasury dipped by eight basis points, settling at 4.54%. Concurrently, the two-year treasury rate fell by seven basis points to 4.25%. Monitoring commodities, West Texas Intermediate crude oil increased by 0.8%, trading at $71.14 per barrel.
On the other hand, gold prices saw a slight decrease of 0.4%, now resting at $2,621.50 per troy ounce. Silver also fell, declining by 2% to $29.39 per ounce. Overall, the day's trading revealed a complex interplay of economic indicators and corporate maneuvers, signifying an intriguing yet cautious outlook ahead for investors..